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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

The Effect of Market Competition and Institutional Regulation on Productivity: A Conceptual Modelling

Mohd Azrai Azman, Nor Nazihah Chuweni, Faridah Muhamad Halil, Ku Mohammad Asyraf Ku Azir, L. Lee Boon, Farah Nazira Juhari

http://dx.doi.org/10.6007/IJARAFMS/v12-i3/15250

Open access

Market competition and institutional regulation has been long regarded as a force that can improve productivity in the economy. Nevertheless, it is still unclear whether market competition and institutional regulation that governs the market can affect the performance of large construction firms (LCF) in Malaysia in terms of productivity. It is important because productivity performance is best known to measure long-term economic performance, improving competitiveness and living standards. In response, this paper aims to discuss and present a conceptual model that links the constructs of market competition, institutional regulation, and their interactions with firm-level construction productivity. In addition, this paper also evaluates methods to measure these variables and model their relationships based on appropriate theoretical and statistical considerations. It is expected that this study has both theoretical and practical implications. Therefore, it could help with theoretical propositions between constructs studied, which can be tested in the future. It is anticipated future research could help with theoretical and policy implications regarding market competition and institutional regulation that could improve LCF’s long-run productivity performance based on sustainable economic incentives.